When Should I File Taxes?
With so much going on in the first few months of the new year, it can be difficult to take a moment and consider when to file taxes for yourself or your business. While taxes are typically
due around the middle of April (in some extraneous cases, states may delay the deadline), you’ll never want to wait until the very last minute. So, when is the best time to file tax returns?
Can I File Taxes in January?
While some might say there's no time too early to file tax returns, your return likely won't be accepted by the IRS if you try to get everything together on January first. Can you file taxes in January? Yes! But the IRS typically begins accepting returns with the last week of the month, and some employers might not send out the documents you need until the last minute.
When is the Best Time to File Tax Returns?
Once you have all of your tax information from the previous year collected, you’ll want to get your taxes filed as soon as possible, preferably by the middle of March. Since the deadline usually falls in the middle of April, setting a time to get your taxes filed a month or two before the deadline will ensure you can thoroughly prepare your tax returns and receive any tax return checks faster.
Filing your taxes early can also keep you better protected from tax identity theft and protect your other personal information on your annual W-2, 1099 forms, and other important financial documents. If you have your taxes filed within the standard period, you can expect your return in three weeks.
In order to easily file your taxes, you’ll want to find a reliable online tax software that can store all of your current and previous tax info and enable you to track your return, as those tax return checks sent through the mail can be lost. If you have a trusted financial advisor or tax expert to help you, be sure to schedule a time to meet with them early to avoid facing higher charges to file your taxes within the final thirty days before the deadline.
What If I File After Tax Day?
If the tax day deadline comes around and you still have not had the chance to file, you may face a minimum of 5% or even a maximum 25% penalty fee for every month your tax return is late. If you know you won’t meet the April deadline, you can request an extension. However, you need to notify the IRS and have the extension approved ahead of time. You’ll have to pay interest and once again have to deal with penalty charges if you are late.
What If the Tax Return Deadline is Extended?
While the U.S IRS tax deadline has been changed this year from April 15, 2020 to July 15, 2020, it is still best to file your taxes as early as possible unless you specifically need the extra time to gather money you might owe. Even with an extended deadline, it's still best to try to file at least 30 days ahead.
Learn More at Public Service Credit Union
Now that you know more about the best time to file tax returns, you’ll be ahead of the curve every time tax season rolls around. If you’re looking for more information on how to keep your finances in order or establish a safe and secure place to manage your money, you can always turn to the Public Service Credit Union. We’re proud to service the Detroit area by offering a range of personal lending and business banking services to help you meet your financial goals. Contact us today!